President Barak Obama changed pace Wednesday morning when he announced his plans to allow drilling off the Virginia coast and in the Eastern Gulf of Mexico. This decision is a reversal from the presidents known opposition and ban against more drilling.
The expansion of drilling is good news for Louisiana. "There will be an increase in jobs, a number of rigs in the Gulf and much more. So, all of that would be very, very positive," said Louisiana Oil and Gas Association president Don Briggs.
The concern is, while Obama expanded drilling, he's canceled new drilling sites previously planned in Alaska. Another concern is if the president applies his budget, the oil and gas industry will owe him $36 billion dollars in taxes. A price tag, Briggs says is too expensive for them to afford. "He will make it very difficult for the industry to be able to explore and develop the Eastern Gulf of Mexico when we are stripped of the many incentives that we need to be able to drill and explore with."
Briggs says in order for Obama to open up the Gulf of Mexico he will have to go through congressional action. "Unfortunately, we believe that is tied to some votes that he's going to need here in the next week or two on climate change. The devil is in the details, and that's what takes time to find out," said Briggs.
President Obama says the only way this expansion will succeed is if it strengthens our economy. Oil Executive believes it has the potential to do so. However, they say they need more details.
Sarah Rosario
srosario@katctv.com



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